Saudi-based fin-tech Funding Souq has secured a strategic investment from Foodics, which becomes a major investor in the round. The investment amount and ownership stake were not disclosed. The deal will expand embedded financing for restaurants and SMEs in Saudi Arabia and the UAE.
What Funding Souq does
Founded in 2020 by Martin Jaouni, Funding Souq runs a Shariah-compliant SME financing platform. It is regulated by the Saudi Central Bank (SAMA) and the Dubai Financial Services Authority (DFSA). Its products include:
Business loans
Invoice financing
Supplier financing
How the Foodics partnership works
The partnership will let Funding Souq offer embedded financing to Foodics’ network of restaurant and hospitality businesses. It will use restaurant sales and operational data to assess creditworthiness. As a result, financing can be tailored to how each merchant operates.
Together, the two companies have created Saudi Arabia’s first fully automated business loan, according to Jaouni. He added that the deal accelerates Funding Souq’s embedded finance plans across sectors where SMEs are undeserved.
Foodics’ push into financial services
The investment comes as Foodics expands its financial services offering through Capital 2.0, its automated financing solution for restaurants. The company plans to deploy USD 100 million in financing through Capital 2.0 in its first year.
Foodics sees the investment as part of a longer-term ambition to evolve beyond restaurant technology into a broader financial services platform. Ultimately, it aims to become the future bank for restaurants and the hospitality sector.
Funding Souq’s growth targets
Funding Souq says it has built a community of more than 10,000 investors. It is on track to facilitate USD 1 billion in SME financing over the next three years.